WVC 33 - 10 - 41
§33-10-41. Reinsurer's liability.
The amount recoverable by the liquidator from reinsurers may
not be reduced as a result of delinquency proceedings unless the
reinsurance contract provides, in substance, that in the event of
the insolvency of the ceding insurer, the reinsurance shall be
payable under a contract reinsured by the assuming insurer on the
basis of reported claims allowed by the liquidation court, without
diminution because of the insolvency of the ceding insurer. The
payments shall be made directly to the ceding insurer or to its
domiciliary liquidator except: (1) Where the contract or other
written agreement specifically provides another payee of the
reinsurance in the event of the insolvency of the ceding insurer;
or (2) where the assuming insurer, with the consent of the direct
insured, has assumed the policy obligations of the ceding insurer
as direct obligations of the assuming insurer to the payees under
the policies and in substitution for the obligations of the ceding
insurer to the payees.
Note: WV Code updated with legislation passed through the 2016 Regular Session
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